Wednesday, March 01, 2006

Questions / Answers

Bob Bodine has these questions:

Here is a partial list of questions I have relating to the proposed tax.

I am having a very difficult time understanding how Mesa got into this financial mess in the first place. We have been, and continue to be, one of the fastest growing cities in the nation. With that growth comes increased tax revenue, impact fees, building fees, and the list goes on and on. If the City had been managed properly would we now be facing a financial problem? [1]

[1]The answer here is yes. There have been some management issue but at the heart of the issue is the revenue side. We get revenue from city sales taxes, utility revenue, and state shared revenue.

I am having a very hard time understanding how we can afford to build a very expensive performing arts center and now be broke. Did the City know about the financial problems back when the decision was made to build it? If not why? [2]

[2]The Arts Center was built with voter approved sales taxes specifically set aside for that use. There is no debt associated with the building. We are also spending the same amount in general fund dollars in the new arts center as we were in the old arts center next to the post office. The city would be in the same financial condition if it was built or not.

I am having a very, very, hard time understanding why the City spent 60K to an out of state a recruiting firm to help find a new City Manager. I have worked in human resource management for over 25 years and I cannot see how that was necessary. Please explain to me why it was? [3]

[3]To get the best and the brightest we need to search the country. You don’t solve problems by selecting from the people who may have created them in the first place. I am glad they brought in somebody from the outside.

I can’t understand why we have so many stop lights along Main Street and the downtown area. Each intersection can cost up to 80K. Explain to me how spending all that money was and is necessary? [4]

[4]You will need to do some research on this. Typically, some very smart transportation professionals make decisions like this. This comment is basically armchair quarterbacking old decisions.

Can you tell me if it was possible to build a less expensive fire station downtown? It’s very nice, but if we were going broke couldn’t we have done something a little less expensive. [5]

[5]I completely agree with you on this point. I agree we could have done well with much less. The concept, as I understand it, is this is a battalion headquarters and merited the larger building.

Help me understand why our City has a reputation for being so unfriendly to business and why it’s so difficult to build and put in businesses in Mesa? Wouldn’t being more business friendly increase the number of business and the tax revenue? [6]

[6]Friendliness has little to do with bringing in new business. The market determines what business locates where. The City of Mesa, by the way, doesn’t have regulation different than any city in Maricopa County. The lack of property tax hasn’t been any incentive to bring large employers here either.

Help me understand why it took three police cars and three officers to issue a minor traffic to ticket to one of our neighbors kids? Does that seem like effective utilization of manpower and tax revenue? [7]

[7]Different circumstances warrant different responses. I am hesitant to second guess the cops response to an issue.

I can’t understand how in a recent report I read that our city streets were in horrible condition and that it would take tens of millions to fix them. How did all this happen while the City was spending millions on a new parking structure for the police, art centers, and host of other non-essential items? Did the City just wake up one day and realized it was now a problem? Or, did the City ignore the problem and hope it would go away? [8]

[8]The City has been defering maintenance as a budget saving measure so it would not have to ask the citizens for a tax increase. It is now time to pay the bill. The city also hoped sales tax revenues would pick up but they have steadily been drained to other cities.

Please explain to me how the City has demonstrated it can be trusted to effectively manage the money that we citizens have already provided? [9]

[9]There are no guarantees, sorry. Circumstances, politics and economies all change.

What assurance can you give that in another five or ten years the City won’t be coming back asking its citizens to bail them out of another financial crisis? [10]

[10]See above answer.

Please explain to me why the answer to virtually any government problem is to spend more money? [11]

[11]Can you please name for me the alternatives to spending more money? If your plumbing leaks, do you buy new parts and call a plumber? Does that cost money. Everything that costs more for you, costs more for the city.

Please help me understand why the City allowed this problem to occur in the first place? [12]

[12]The city doesn’t “allow” a problem to occur. Chandler built a new mall to draw off sales tax dollars, Tempe does the same, 9-11 happens, recession, etc. Many things are out of the city’s control.

And I would really like to know if the City will be willing to come to my rescue and take care of my credit card debt because I was irresponsible and overspent this last Christmas? [13]

[13]Comments like this discredit you as someone serious about your questions. Is it really a matter of over spending or not making enough money to cover last Christmas? It is all about perspective.

2 Comments:

At 12:19 PM, Anonymous Anonymous said...

Just read the exchange between Bob Bodine's and Dave Richin. Bob has some good questions. The answers were weak on solutions. It seems the city has been guilty of spending money on 'pork-barrel' projects and catering to special interests. If a Mesa resident thinks the management of the city lacks fiscal restraint, vote them out of office and start new.

 
At 9:47 AM, Anonymous Anonymous said...

I appreciated Mr. Dave Richin's answers to my questions. His answers however do not adequately address the issues

Question
1. I am having a very difficult time understanding how Mesa got into this financial mess in the first place. We have been, and continue to be, one of the fastest growing cities in the nation. With that growth comes increased tax revenue, impact fees, building fees, and the list goes on and on. If the City had been managed properly would we now be facing a financial problem?

Mr. Richin's Answer
The answer here is yes. There have been some management issue but at the heart of the issue is the revenue side. We get revenue from city sales taxes, utility revenue, and state shared revenue.

Response:
The point is the City is a business. It is in the business of government and providing for the safety and security of its citizens. The City has a monopoly on licenses fees, impact fees, building permits, business licenses, sales taxes, utilities, and the list could go on and on. If the City had been managed properly we would not be experiencing the current difficulty. They should have planned and budgeted accordingly. That is exactly what we do in our personal lives and business does every day. The government should not be exempt from following sound business practices and budget management. And now we have a financial crisis in one of the fastest growing cities in the nation. Growth creates more revenue! Additionally, the State already proposing an increase in the amount that goes to the City by tens of millions?

Question
2. I am having a very hard time understanding how we can afford to build a very expensive performing arts center and now be broke. Did the City know about the financial problems back when the decision was made to build it? If not why?

Mr. Richin's Answer
The Arts Center was built with voter approved sales taxes specifically set aside for that use. There is no debt associated with the building. We are also spending the same amount in general fund dollars in the new arts center as we were in the old arts center next to the post office. The city would be in the same financial condition if it was built or not.

Response
The argument that the Arts Center was built with voter approval and has no impact on the current finances simply does not make any sense. To state that the City would be in the same position financially whether we built the Arts Center or not is ignoring the basic question. The City was going broke and if the voters had known that fact I doubt they have approved the Arts Center. Why were the voters not given the option to spend the money on the improvement of roads or preventing the financial crisis? I don’t believe it makes any sense to go to the voters and get them to approve a massive Arts Center when the City is in a financial crisis. To me at least, it doesn’t seem reasonable for the City to spend hundreds of thousands in real dollars and manpower on the development of non-essentials programs and buildings when we are going broke. In my opinion what the City did was dishonest and immoral. Did anyone from the City ever provide the voters with a choice of an Arts Center or the repair of our streets? Failure to do so is dishonest. And I believe the argument that the funding for the Arts Center came from a vote of the people and has nothing to do with the current problem is at best misleading and disingenuous.

Question
3. I am having a very, very, hard time understanding why the City spent 60K to an out of state a recruiting firm to help find a new City Manager. I have worked in human resource management for over 25 years and I cannot see how that was necessary. Please explain to me why it was?

Mr. Richin's Answer
To get the best and the brightest we need to search the country. You don’t solve problems by selecting from the people who may have created them in the first place. I am glad they brought in somebody from the outside.

Response
I agree with the Mr. Richin’s statement that we needed to get the best people possible. And I think going outside to get someone makes sense as well. That doesn’t mean you have to pay an outside recruiting firm 60K to do it. I personally have recruited CEO’s, COO’s, CFO’s, VP’s, physician and everything in between. You simple do not need to pay someone or some company from outside to do the work for you. You place ads in the appropriate publications, screen the resumes, interview the appropriate applicants, conduct the necessary background checks and extend the appropriate offer. That should have been done in house and 60K could have been saved. Companies, organizations and cities all over the nation follow that exact procedure every day.

Question
4. I can’t understand why we have so many stop lights along Main Street and the downtown area. Each intersection can cost up to 80K. Explain to me how spending all that money was and is necessary?

Mr. Richin's Answer
You will need to do some research on this. Typically, some very smart transportation professionals make decisions like this. This comment is basically armchair quarterbacking old decisions.

Response
I have done some research on this. The engineer that handled traffic for the Salt Lake Olympics, and the last two Super Bowls agrees with me. Beside, it doesn’t take a PhD to drive downtown any time of the day and see that at most lights cars are stopped so we can watch nothing and nobody flow in the opposite direction.
Question
5. Can you tell me if it was possible to build a less expensive fire station downtown? It’s very nice, but if we were going broke couldn’t we have done something a little less expensive.

Mr. Richin's Answer
I completely agree with you on this point. I agree we could have done well with much less. The concept, as I understand it, is this is a battalion headquarters and merited the larger building.

Response
Not only could the City have done a better job, they should have

Question
6. Help me understand why our City has a reputation for being so unfriendly to business and why it’s so difficult to build and put in businesses in Mesa? Wouldn’t being more business friendly increase the number of business and the tax revenue?

Mr. Richin's Answer
Friendliness has little to do with bringing in new business. The market determines what business locates where. The City of Mesa, by the way, doesn’t have regulation different than any city in Maricopa County. The lack of property tax hasn’t been any incentive to bring large employers here either.

Response
The City of Mesa does have a reputation for being business unfriendly. Talk to the developers and business owners. Although we have the same regulations as other cities it is how those regulations are administered and applied that can make the City friendly or unfriendly.

I would love to hear from the owners of Fiesta Mall and get their opinion on how friendly the City is to business. It wasn’t that long ago that they wanted to expand the mall but the City prevented that action. Mall owners felt they needed to expand in order to stay competitive. Ask them how they feel about that decission today and the impact it has had on the mall. I can’t help but wonder what the impact and sales tax revenue is.

Question
7. Help me understand why it took three police cars and three officers to issue a minor traffic to ticket to one of our neighbors kids? Does that seem like effective utilization of manpower and tax revenue?

Mr. Richin's Answer
Different circumstances warrant different responses. I am hesitant to second guess the cops response to an issue.

Response
I am not hesitant to second guess what occurred. I was there. It is the obligation of every citizen to second guess what any public official does. I am not questioning the need for law enforcement and the great job our officers do. I can and should however, question how dollars are spent, manpower utilized and if our police department is being managed in the most effective and efficient way possible. I see nothing wrong with that.

Question
8. I can’t understand how in a recent report I read that our city streets were in horrible condition and that it would take tens of millions to fix them. How did all this happen while the City was spending millions on a new parking structure for the police, art centers, and host of other non-essential items? Did the City just wake up one day and realized it was now a problem? Or, did the City ignore the problem and hope it would go away?

Mr. Richin's Answer
The City has been defering maintenance as a budget saving measure so it would not have to ask the citizens for a tax increase. It is now time to pay the bill. The city also hoped sales tax revenues would pick up but they have steadily been drained to other cities.

Response
This is exactly my point. Why has the City been deferring basic maintenance and spending hundreds of thousands, studying, promoting, and developing non-essential expenditures such as the Arts Center. Again, was the City honest and telling us what was happening? They never offered us, the voters, with choices and options. The City never told us that maybe it would have been better to approve a program to increase revenue for essential services rather than build an elaborate fire station, a covered police parking structure and a very costly Arts Center.

Question
9. Please explain to me how the City has demonstrated it can be trusted to effectively manage the money that we citizens have already provided?

Mr. Richin's Answer
There are no guarantees, sorry. Circumstances, politics and economies all change.

Response
On this issue I will agree to disagree. I believe there should be guarantees. That’s what we look for as consumers. Why shouldn’t we have some reasonable certainty that we won’t be right back where we are today two years down the road.

Question
10. What assurance can you give that in another five or ten years the City won’t be coming back asking its citizens to bail them out of another financial crisis?

Mr. Richin's Answer
See Above

Response
See Above

Question
11. Please explain to me why the answer to virtually any government problem is to spend more money.

Mr. Richin's Answer
Can you please name for me the alternatives to spending more money? If your plumbing leaks, do you buy new parts and call a plumber? Does that cost money. Everything that costs more for you, costs more for the city.

Response
There is always an alternative to spending money. We face that decision everyday in our personal lives and professional lives. If the plumbing is going out in my home I have the option to fix it or replace it. I have the option to do it myself or hire someone to do it for me. I have the option to hold off on getting a big screen TV and get the plumbing fixed or not. I’d love a new car and I have the option of getting one or fixing the plumbing. In business they don’t have the option, unless they have a total monopoly, of just arbitrarily charging more because of changes in the market and economy. When you overspend you can’t just walk into you boss and demand more money either. You work with a budget and stay in the black. It’s really that simple. And why shouldn’t we expect, and demand that our City do the same.

I really wonder when in government enough is enough. After all, they are asking for just a “small” INCREASE in the sales tax. “And it’s not a lot of money for a property tax.” “And we only raised our impact fees slightly. “ And the increase in the County tax rate is really only a few hundred dollars per year per family. “What’s a few more pennies tacked on to our utilities?” And we all know what we pay for our auto licenses and registration is just a small fraction of our annual income and no big deal. And wasn’t it just a few years ago Arizona voter approved a huge tax increase that was suppose to solve all the problems we have in public education. We all know we got more than our money’s worth from that increase. And none of us really care about how much we pay at the gas pump in taxes. And who among us doesn’t want to pay more income and Social Security tax. I may not be the brightest person on this earth but is seems to me that a little tax here, and a little tax there, can eventually add up to an awful lot of money.

So when is enough enough? I wonder what really would happen if the City didn’t get all the money they are asking for. Would they then be forced to operate like the rest of us? I for one would like to see them at least try.

Question
12. Please help me understand why the City allowed this problem to occur in the first place?




Mr. Richin's Answer
The city doesn’t “allow” a problem to occur. Chandler built a new mall to draw off sales tax dollars, Tempe does the same, 9-11 happens, recession, etc. Many things are out of the city’s control.

Response
Saying that the City did not “allow” the problem to occur and is an innocent victim of change, is just like saying I am not responsible for my own actions. I think of the comedian Flip Wilson, who years ago had a routine where his character claimed he was not responsible for all the stupid things he did, “the devil made me do.” Of course they are responsible. Why did they spend money on non-essential programs and buildings knowing this was happening? I guess the “devil made them do it”.

Question
13. And I would really like to know if the City will be willing to come to my rescue and take care of my credit card debt because I was irresponsible and overspent this last Christmas?

Mr. Richin's Answer
Comments like this discredit you as someone serious about your questions. Is it really a matter of over spending or not making enough money to cover last Christmas? It is all about perspective.

Response
I am sorry you feel the question discredits me as someone who is serious about the problem. The question is really rhetorical. Regardless, the question is germane and needs to be considered. You see, it really doesn’t matter if I, or the City, didn’t make enough money or just over spent. What matters is that I have to live within my means and manage effective and efficiently. The question we need to ask is whether the City should do the same thing.

 

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